The Bank of England has again opted to hold UK interest rates in a move which brought anger from some property industry professionals.
Officials from the Bank’s monetary policy committee decided to keep rates at five per cent for the fourth month in a row.
Some commentators said they understood the cautious approach while others demanded a rate cut, saying this would kick-start the economy and revive the property market.
Neil Young, of Property Portfolio Managers, Young Group, said:
“As ever, the committee is engaged in a delicate balancing act between keeping the base rate at an appropriate level for the current economic conditions and ensuring inflation is held in check.
“Inflationary pressure is at a level such that the committee could not reduce the base rate without running serious risk of inflation pulling further away from the government’s target of two per cent.”
Smartnewhomes managing director David Bexon called the decision “ludicrous”. He argued the government must be “far bolder” and move to cut rates.
He said:
“With construction figures reported to have plummeted in July and house builders being forced to stall sites and cut jobs simply to survive in the current market, the Bank of England’s decision to hold interest rates, yet again, seems a ludicrous one.”
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